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Nayega Mining Convention Negotiations Concluded
Ferrex plc, the AIM quoted manganese development and iron ore exploration company focused in Africa, has announced a positive update on activities at the Nayega Manganese Project in northern Togo held through its 85% owned subsidiary SGM SARL.
Highlights:
· Mining Convention negotiations concluded – document forms the basis for the proposed development of Nayega
o Consisted of negotiations between the Company and the Government of the Republic of Togo though its appointed “Point Focal” group
o Positive outcome for both the Company and the Government as the document outlines the significant contribution that Nayega will make to community development, skills transfer and fiscal uplift in return for tax stabilisation and other fiscal incentives
o Next step is the grant of an exploitation permit anticipated by the end of Q2 2015
· Definitive Feasibility Study nearing completion
o Focused on accelerated start-up model to export 250,000 tonnes per annum of manganese ore to generate early cashflow
o Initial numbers indicate significantly less capital and lower operating costs
o Awaiting final costing inputs prior to anticipated announcement at the end of April 2015
· Discussions with project financiers and manganese off-takers progressing positively
o Company is in continuing discussions with a number of parties to provide finance for project development
o Also in manganese off-take discussions with a number of parties interested
· Major tenders for Nayega development to be drawn up
o Tenders for process plant and other major items to be drafted and released to allow winning contractor to be appointed simultaneous with the award of the exploitation permit
· Updated resource and maiden ore reserve report
o Assay results received – resource upgrade targeted before the end of March 2015
o Finalisation of the DFS for the accelerated start-up model will allow estimation of maiden ore reserve
· Regional strategy adopted
o Management focus shifting to regional manganese opportunities to leverage Nayega knowledge and infrastructure base
Ferrex Managing Director Dave Reeves said, “We have made some major advances in progressing the Nayega Manganese Project towards development over the last two months. The recent conclusion of the Company’s detailed negotiations with the Government’s appointed representative group, Point Focal, is a significant step forward and we are pleased to have achieved a win-win outcome for both parties. The convention, which covers a wide variety of issues including taxes, environmental and community requirements and state participation, details the Company’s support of the government’s desire to achieve more from the minerals industry. Togo’s government aims to achieve this through a significant community programme, local skills transfer commitments and government participation whilst supporting the Company through tax stabilisation and other fiscal incentives.
“In parallel with these discussions, the Company will soon complete the modelling and documentation of the accelerated start-up option. The results of this re-modelling are yet to be finalised but initial indications appear compelling. This model, combined with the recent terms agreed in the Mining Convention, will allow finalisation of the full feasibility results and a maiden ore reserve for the Project.
“In addition, as per the previously stated focus for Ferrex on manganese, the Company is now actively pursuing several opportunities in the region that it intends to leverage through its infrastructure at Nayega when it is developed. I look forward to updating the market on this initiative as it develops.”
